About PMEGP

• Prime Minister’s Employment Generation Programme (PMEGP) is a central sector scheme administered by the Ministry of Micro, Small and Medium Enterprises since 2008-09.
• It is a major credit-linked subsidy programme aimed at assisting first generation entrepreneurs for setting up micro enterprises in the non-farm sector by helping traditional artisans and unemployed youth.
• At the national level, the Scheme is being implemented by Khadi and Village Industries Commission (KVIC), a statutory organization under the administrative control of the Ministry of MSME, as the single nodal agency.
• At the State level, the Scheme will be implemented through State KVIC Directorates, State Khadi and Village Industries Boards (KVIBs) and District Industries Centres (DICs) and banks.
• Under the scheme, loans are being provided by all Public Sector Banks, selected Private Sector Banks and Co-operative Banks with margin money subsidy (refers to the amount that the government contributes to beneficiaries availing PMEGP loan) being given by the Ministry of MSME through KVIC.

Scope

• The scheme is applicable to all viable projects in rural as well as urban areas, under the Micro enterprises sector.
• The maximum cost of the project admissible under the manufacturing sector is Rs.25 lakhs and the business/services sector is Rs.10 lakhs.
• Only one person from a family is eligible for obtaining financial assistance under the scheme.
• Assistance under the Scheme is available only for new projects.

Eligible Entrepreneurs / Borrowers

• Any individual, above 18 years of age
• The beneficiaries should have passed at least VIII standard, for setting up of project costing above Rs.10 lacs in the Manufacturing Sector and above Rs. 5 lacs in the business /Service Sector,
• Self Help Groups
• Institutions registered under Societies Registration Act, 1860
• Production Co-operative Societies
• Charitable Trusts

Why in News?

• The Union Minister of State for Micro, Small & Medium Enterprises interacted with beneficiaries of the Prime Minister Employment Guarantee Program (PMEGP) and entrepreneurs in Manipur.
• During the program, beneficiaries and representatives shared their problems, ideas, and suggestions regarding taking loans from banks and other difficulties faced by them during the course of their entrepreneurship with the Union Minister.

Reference:

1. https://newsonair.gov.in/News?title=Union-Minister-Bhanu-Pratap-Singh-Verma-interacts-with-beneficiaries-of-PMEGP-and-entrepreneurs-in-Manipur&id=447018